(Translation of Japanese Original)
November 24, 2022

For Immediate Release
REIT Issuer
Hankyu Hanshin REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu Hanshin REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Kiyotaka Okano
General Manager, Financial and IR Department
Email: IR_PR@hhram.co.jp

Notice Concerning Acquisition of Domestic Real Estate
Hankyu Hanshin REIT, Inc. (hereafter “HHR”) hereby notifies that Hankyu Hanshin REIT Asset Management,
Inc., the asset management company that HHR has selected to manage its assets (hereafter the “AssetManagement Company”), today decided to make the following acquisition.

Details
1. Overview of Acquisition(1) H-CUBE KITAAOYAMA
1) Specified asset type:2) Property name:Right of ownership
H-CUBE KITAAOYAMA

3) Planned acquisition price: 1,410,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)4) Appraisal value:

1,490,000,000 yen (Date of appraisal: October 31, 2022)

5) Planned acquisition date: December 1, 2022
6) Seller:

Hankyu Hanshin Properties Corp.

7) Intermediary:None8) Acquisition fund:New borrowings as indicated in “Notice Concerning Debt Financing” dated
today(2) H-CUBE MINAMIAOYAMA II
1) Specified asset type:
Right of ownership
2) Property name:

H-CUBE MINAMIAOYAMA II

3) Planned acquisition price: 3,468,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax andconsumption tax, among others)4) Appraisal value:

3,540,000,000 yen (Date of appraisal: October 31, 2022)

5) Planned acquisition date: December 1, 2022
6) Seller:

Hankyu Hanshin Properties Corp.

7) Intermediary:None8) Acquisition fund:New borrowings as indicated in “Notice Concerning Debt Financing” dated
today

1

2. Reason for Acquisition
Based on the target and policy of asset management stipulated in the Articles of Incorporation, theacquisition of the two properties, consisting of a mixed-use (complex) facility “H-CUBE KITAAOYAMA” andan urban retail facility “H-CUBE MINAMIAOYAMA II,” developed by the sponsor group, Hankyu Hanshin
Properties Corp., in central Tokyo (hereafter, collectively referred to as “the Two Assets Planned to be
Acquired”) is intended to establish a well-balanced portfolio and to secure steady growth toward the postcoronavirus phase. At the same time, we will strive to further increase the distribution level by acquiring thetwo properties using our debt funding capacity which we maintain through stable financial operations. It
should be noted that the acquisition of the Two Assets Planned to be Acquired is intended to coordinate withthe short-term-returns (fix-and-flip) business of the sponsor group, which considers the businessdevelopment in the Tokyo Metropolitan area as one of their key strategies.
The Two Assets Planned to be Acquired are among the sponsor group’s development projects in central
Tokyo, “H-CUBE” series (Note 1), following “H-CUBE MINAMIAOYAMA” acquired in December 2021. Bothof the two properties are located in the Omotesando and Aoyama area, where domestic and foreign fashion
brand street-level stores are concentrated, and are built on a corner facing a particularly accessible street.
As such, HHR decided that the medium-to-long-term continuous need for opening stores can be expected
due to the highly competitive location in the area. Meanwhile, in the investment criteria as set forth in theasset management guidelines (Note 2), both properties fall short of the numerical criteria in part. However,considering that “Kita-Aoyama San cho-me Building” and “H-CUBE MINAMIAOYAMA” owned by HHR in
the neighboring area maintain stable profitability, HHR expects that profitability of the Two Assets Planned
to be Acquired will also be stable. Consequently, HHR decided that both properties can be acquired at a fair
price to secure a certain yield level, and that the acquisition of the Two Assets Planned to be Acquired willcontribute to the improvement of the quality of the portfolio and be in the unitholders’ interests.
The average yield after depreciation of the entire portfolio subsequent to the acquisition is expected to remain
at 3.5%, the same level as at the end of the 34th fiscal period (ended May 2022).
(Note 1) “H-CUBE” series:“H-CUBE” is a street-level low-rise retail facility developed by the sponsor group in the Tokyo Metropolitan areawith the concept of “constantly thinking about the city.” Taking advantage of the urban development know-how
which the sponsor group has accumulated in the Kansai Region, H-CUBE has been developed to keep up with thechanging trends of the times and the lifestyles of people. The facility has a simple and sophisticated shape like a
combination of “cubes,” and large windows facing the street in front as its feature, providing visitors with diversified
trends and making the area feel extra special.
(Note 2) The numerical criteria stipulated in the asset management guidelines (internal rules) of the Asset Management Company.
・Urban retail facility: The total floor area is 500 m2 or more, in principle.
The total floor area is 3,300 m2 or more, in principle.
・Office facility:

HHR evaluated the following points when deciding on the acquisition of the Two Assets Planned to be
Acquired.
(1) H-CUBE KITAAOYAMA
The property is a mixed-use (complex) facility for retail and office use located a three-minute walk from
Omotesando Station, which is connected to the Tokyo Metro (Ginza Line, Chiyoda Line and HanzomonLine).
The property is located in “Aosando/Aojindo” (indicating the alley that passes from Aoyama-dori Street
to Jingumae and its vicinities in the Kita-Aoyama area), somewhat behind Aoyama-dori Street on thewestern side. In this area, we can observe people seeking individuality and those who choose to enjoy a2stroll, avoiding noisy main streets. It is an area where restaurants and bars, fashion goods stores, apparelshops and showrooms, and hair salons concentrate. Among them, the property is located on a corner
facing Aojindo Street, and the building has one basement floor and two stories above ground. The façade
is all glass-covered with excellent visibility. Considering the high potentiality of the property as a roadsidestore, and the characteristics of the facilities matching the expectations of discerning visitors, HHR judgedthat high rental demand can be expected.
The property currently houses the office and showroom of Animoca Brands KK and hair salon YVESS.
(2) H-CUBE MINAMIAOYAMA II
The property is an urban retail facility located a two-minute walk from Omotesando Station, which isconnected to the Tokyo Metro (Ginza Line, Chiyoda Line, Hanzomon Line).
The Minami-Aoyama area, where the property is located, is the area with the highest fashion andlifestyle sensitivity, and is one of Japan's leading areas with high needs for roadside stores of designer
brands and high fashion.
Among others, the property faces a particularly accessible street connecting Miyuki-dori Street andKotto-dori Street, and is located on a corner extremely close to the entrance of Miyuki-dori Street whichconnects the Omotesando Crossing. The building has one basement floor and two stories above ground,and is all glass-covered. It is divided into two sections, north and south, and both sections have excellent
visibility from the street. With the rooftop terrace on the south section, it is possible to use the space forthe transmission of information or experience by periodically holding events and others. As it is located in
an area of concentrated roadside stores in the Minami-Aoyama area and stands on the key movement
line connecting Miyuki-dori Street and Kotto-dori Street, the potential of the property as a roadside store ishigh. Moreover, the property has characteristics that match the expectations of brands that desire to open
a store in the area. Thus, we judged that high rental demand can be expected.
The property currently houses fashion brand PERVERZE THE EMBODIMENT STORE and highperformance athletic wear brand lululemon Aoyama.
[Status of Portfolio]
End of 34th fiscal
period (ended
May 2022)
Number of properties

32 properties

Date of acquisition(planned)(Average) NOI yield(Note 1)

(Average) yield after
depreciation (Note 1)
Unrealized gain/loss(Note 2)

H-CUBEKITAAOYAMAH-CUBEMINAMIAOYAMA II

1 property

1 property

After theacquisition ofassets tobe acquired(Note 3)34 properties

December 1, 2022 December 1, 2022

Acquisition (planned)
price
Asset scale

Asset to be acquired

1,410
million yen

3,468
million yen

168,643
million yen

173,521
million yen

4.6%

3.4%

3.4%

4.6%

3.5%

3.2%

3.3%

3.5%

32,308million yen

57
million yen

36
million yen

32,822
million yen

3(Note 1) (Average) NOI yield is calculated by dividing the sum total of (a) the difference between the real estate lease
operation income and real estate lease operation expenses of each property and (b) depreciation, by totalacquisition planned price. (Average) yield after depreciation is calculated by dividing the sum total of difference
between the real estate lease operation income and real estate lease operation expenses of each property, by
total acquisition planned price. (Average) NOI yield and (Average) yield after depreciation are calculated basedon the following figures.
・End of 34th fiscal period:
Actual figures for the 34th fiscal period・Asset to be acquired:
The first fiscal year’s operating revenues and operating costs using the
DCF method as indicated in the appraisal report are used.
・After the acquisition of assets to be acquired:Figures after adding the figures of the Asset to be Acquired to the actual
figures for the 34th fiscal period.
(Note 2) Unrealized gain/loss indicates the difference between the appraisal value and the book value and is calculated
based on the following figures.
・Asset to be acquired:Figures calculated based on the book value (expected value) which are
the total of the acquisition planned price and acquisition expenses thatare to be recorded as assets pursuant to the accounting policy of HHR.
・After the acquisition of assets to be acquired:Figures obtained by adding/subtracting unrealized gain/loss of the Assetto be Acquired as well as expected capital expenditures and depreciationin the 35th fiscal periods to/from unrealized gain/loss at the end of the34th fiscal period.
(Note 3) The figures After the acquisition of assets to be acquired are figures considering only the acquisition of the Assetto be acquired (as for unrealized gain/loss, expected capital expenditures and depreciation in the 35th fiscal
periods are also added/subtracted) after the end of the 34th fiscal period and may differ from actual figures.

3. Details of the Asset Planned to be Acquired(1) H-CUBE KITAAOYAMA
Property name
H-CUBE KITAAOYAMA
Specified asset type
Right of ownership
Planned acquisition price
1,410,000,000 yen
1,490,000,000 yen (Date of appraisal: October 31, 2022)
Appraisal value(Appraisal organization: DAIWA REAL ESTATE APPRAISAL CO., LTD. )Location Address
3-13-7 Kitaaoyama, Minato-ku, Tokyo
Month/
Building coverage
80%
February, 2021
Year built
Steel-frame, reinforced
Structure/ concrete structure with
Floor area ratio
160%
flat roof/ 2 floors with 1
Floor
underground floor
Land
Building
Category 1
Zone use
Use
shop
residential zone
Total floor
Site area
254.86 m2
407.24 m2
area
Form ofForm of ownership Right of ownership
Right of ownershipownership
Design company
RESEARCH INSTITUTE OF ARCHITECTURE
Construction company
Kawata Construction Co., Ltd.
Building recognition
JAPAN ERI CO.,LTD.
organization
Property Manager
Hankyu Hanshin Building Management Co., Ltd.
8.1％
Earthquake PML(evaluators)(Engineering and Risk Services Corporation and OYO RMS Corporation）
Collateral
None
Other matters to noteNone4(2) H-CUBE MINAMIAOYAMA II
Property name
H-CUBE MINAMIAOYAMA II
Specified asset type
Right of ownership
Planned acquisition price
3,468,000,000 yen
3,540,000,000 yen (Date of appraisal: October 31, 2022)
Appraisal value(Appraisal organization: DAIWA REAL ESTATE APPRAISAL CO., LTD. )Location Address
5-5-1 Minamiaoyama, Minato-ku, Tokyo
Month/
Building coverage
80%
December, 2021
Year built
Reinforced concrete
Structure/ structure with flat roof/
Floor area ratio160%
2 floors with 1
Floor
underground floor
Land
Category 2 mid/highBuilding
Zone userise oriented
Use
shop
residential zone
Total floor
Site area
307.43 m2
448.41 m2
area
Form ofForm of ownership Right of ownership
Right of ownershipownership
Design company
RESEARCH INSTITUTE OF ARCHITECTURE
Construction company
Tsuboi Corporation.
Building recognition
JAPAN ERI CO.,LTD.
organization
Property Manager
Hankyu Hanshin Building Management Co., Ltd.
8.5％
Earthquake PML(evaluators)(Engineering and Risk Services Corporation and OYO RMS Corporation）
Collateral
None
Other matters to noteNone
4. Overview of Leasing(1) H-CUBE KITAAOYAMA
Total number of tenants
Principal tenants
Annual rent
Leasable area
Leased area
Occupancy rate
Security deposits

2
Animoca Brands KK., SUNAO Co., Ltd.
Undisclosed (Note 1)
386.03m2 (Note 2)
386.03m2 (Note 2)
100.0% (Note 3)
Undisclosed (Note 1)(Note 1) Note undisclosed as tenants’ consent has not been obtained.
(Note 2) The area specified in the lease agreement with the tenant as of today is indicated.
(Note 3) The ratio of the rental area to the leasable area.

(2) H-CUBE MINAMIAOYAMA II
Total number of tenants
2
Principal tenants
IMCF Co.Ltd., lululemon athletica JP G.K
Annual rent
Undisclosed (Note 1)
Leasable area
427.33m2 (Note 2)
Leased area
427.33m2 (Note 2)
Occupancy rate
100.0% (Note 3)
Security deposits
Undisclosed (Note 1)(Note 1) Note undisclosed as tenants’ consent has not been obtained.
(Note 2) The area specified in the lease agreement with the tenant as of today is indicated.
(Note 3) The ratio of the rental area to the leasable area.

55. Overview of Seller
NameHankyu Hanshin Properties Corp.
Location
Hankyu Terminal Building, 1-1-4 Shibata, Kita-ku, Osaka City
Title and name of
Ryuichi Morotomi, President and Representative Director
representative
Main business activities Real estate business, etc.
Capital12,426 million yen (as of March 31, 2022)
Date of establishment
February 17, 1947
Net assets and total
Net Assets:
152,160 million yen
assets in the immediately Total Assets: 549,809 million yen
preceding fiscal year
(as of March 31, 2022)
Major shareholders andHankyu Hanshin Holdings, Inc.
100.0%
their shareholding ratio
A unitholder of HHR (investment unit holding ratio: 3.22%). It is
the parent company of the Asset Management Company(investment unit holding ratio: 100%) and falls under the
Capitalrelationship category of interested parties, etc. as defined in the Act on
Investment Trusts and Investment Corporations (Act No. 198 of1951) (hereafter referred to as the “Investment Trust Act”).
There are no personnel relationships to be noted between HHR
Personnel
or the Asset Management Company and the seller (as ofRelationship between
relationshiptoday).
HHR or the AssetManagement Company
A business consignee, etc. of HHR. The seller is also a lessor
and the sellerof the real estate in which the Asset Management Company isBusinessa tenant.
relationship Besides the above, the seller has concluded an information
sharing-related agreement with the Asset Management
Company.
Applicability
The parent company of the Asset Management Company
to related(100% ownership) and is a related party.
parties
6. Status of Property Acquirers, etc.
(1) H-CUBE KITAAOYAMA
Company name
Relationship to special
interested parties
Acquisition background,reasons, etc.
Acquisition date
Acquisition pricePrevious owner
Hankyu Hanshin Properties Corp.
See 5. Overview of Seller above.

－

Development purpose－

April 27, 2017 (site)
The acquisition price is omitted
since the property was owned forover a year.

－(2) H-CUBE MINAMIAOYAMA II
Company name
Relationship to special
interested parties
Acquisition background,reasons, etc.
Acquisition date
Acquisition priceSecond previous owner
Non-interested party

Previous owner
Hankyu Hanshin Properties Corp.

－

Second previous owner
Non-interested party

See 5. Overview of Seller above.

－

Development purpose－

December 3, 2019 (site)
The acquisition price is omitted
since the property was owned forover a year.

－

6

－

7. Transaction with Interested Parties, etc.
The Seller of H-CUBE KITAAOYAMA and H-CUBE MINAMIAOYAMA II fall under interested parties, etc.,
as defined in the Investment Trusts Act. Accordingly, the acquisition has been deliberated and approved by
the investment management committee, the compliance committee and the Board of Directors Meeting of
the Asset Management Company in accordance with the Asset Management Company’s rules concerningtransactions involving conflicts of interest set forth in the asset management guidelines, investment
management committee regulations, compliance committee regulations, etc.
8. Overview of Intermediaries
Not applicable.
9. Settlement Method, etc.
Collective payment on the planned acquisition date
10. Schedule of Acquisition

November 24, 2022
November 25, 2022
December 1, 2022

Resolution of acquisition of the properties at the Asset Management
Company’s Board of Directors Meeting.
Conclusion of properties agreement (planned).
Conclusion of payment for and acquisition (planned).

11. Future Outlook
There is no impact on the forecast of management status for the fiscal period ending November 2022
(35th fiscal period: June 1, 2022 to November 30, 2022) due to the acquisition of the properties. As to thefiscal period ending May 2023 (36th fiscal period: December 1, 2022 to May 31, 2023), the impact on theforecast of management performance will be minimal, and we will announce the forecast of management
status for such period in the financial report for the period ending May 31, 2023 which is planned to bedisclosed on January 20, 2023.

*HHR website: https://www.hankyuhanshinreit.co.jp/eng/<Attached Materials>
・Reference Material 1

Overview of Appraisal Report

・Reference Material 2

Table of Real Estate Portfolio After the acquisition of the Two Assets Planned to be
Acquired・Reference Material 3

Property Photograph or Image View and Map of Surrounding Area

7

Reference Material 1<Overview of Appraisal Report>
H-CUBE KITAAOYAMA

Property nameAppraisal value
Appraisal organization
Date of appraisal

1,490,000,000 yen
DAIWA REAL ESTATE APPRAISAL CO.,LTD.
October 31, 2022

Item
Value indicated by the income approach
Value using the direct capitalization (Fixed-term
capitalization) method(1) Operating revenues (a + b - c)a. Income from rental fees, etc.
b. Other income
c. Loss from non-occupancy,etc.
(2) Operating costs (total of a to h)a. Maintenance/Administrative
fees, etc.
b. Utilities
c. Repairs
d. Property management fee
e. Cost for tenant recruitment
f. Public charges and taxes
g. Casualty insurance
premiums
h. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

Value using the discounted cash flow (DCF) method
Discount rate

Value
1,490,000,000 yen
1,540,000,000 yen

undisclosed (Note)undisclosed (Note)

47,357,968 yen
616,443 yen

278,320 yen
47,696,091 yen
3.1%

1,470,000,000 yen
2.9%

Terminal capitalization rate
Value indicated by the cost approach
Land ratio
Building ratio
Special items toconsider at the time ofmaking adjustments toprovisional calculations
and deciding theappraisal value

Basis for valuation

3.3%

Assessed as the amount obtained by multiplying
assumed security deposit, etc. by investment yield, whichis assessed from both operational and procurement
aspects.
Assessed by referring to capital expenditures of similar
real estate.
Assessed by comprehensively taking into account thelocation, building conditions, contract terms, etc. of thetarget real estate.
Assessed by comprehensively taking into account theindividuality of the target real estate, referring to theinvestment yield in transactions for similar real estate.
Assessed by comprehensively taking into account future
uncertainly based on the capitalization rate.

1,320,000,000 yen
92.0%
8.0%

The target real estate is a retail facility located about 230m southwest of Omotesando Station on the Tokyo Metro
Ginza Line. The area has a concentration of luxury brand shops and showrooms, etc., and is considered to be afavorite location.
In this case, the appraisal value was determined to be 1,490,000,000 yen, based on the assessment of the revenue
price as 1,490,000,000 yen using both the direct capitalization method and the DCF method, and referring to theaccrued price.

The appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase at that appraisal value.
Note: The Asset Management Company decided not to disclose these items as no consent has been obtained from the tenants for thedisclosure of rents, etc., the assessment is based on actual results for reference and there is a possibility that disclosure of these items
will affect its competitiveness and damage the interests of unitholders.

8<Overview of Appraisal Report>
H-CUBE MINAMIAOYAMA II

Property nameAppraisal value
Appraisal organization
Date of appraisal

3,540,000,000 yen
DAIWA REAL ESTATE APPRAISAL CO.,LTD.
October 31, 2022

Item
Value indicated by the income approach
Value using the direct capitalization (Fixed-term
capitalization) method(1) Operating revenues (a + b - c)a. Income from rental fees, etc.
b. Other income
c. Loss from non-occupancy,etc.
(2) Operating costs (total of a to h)a. Maintenance/Administrative
fees, etc.
b. Utilities
c. Repairs
d. Property management fee
e. Cost for tenant recruitment
f. Public charges and taxes
g. Casualty insurance
premiums
h. Other expenses(3) Net operating income (NOI = (1) − (2))(4) Operating profit on deposit and security(5) Capital expenditures(6) Net cash flow (NCF = (3) + (4) − (5))(7) Capitalization rate

Value using the discounted cash flow (DCF) method
Discount rate

Value
3,540,000,000 yen
3,630,000,000 yen

undisclosed (Note)undisclosed (Note)

111,683,653 yen
1,278,997 yen

304,920 yen
112,657,730 yen
3.1%

3,500,000,000 yen
2.9%

Terminal capitalization rate
Value indicated by the cost approach
Land ratio
Building ratio
Special items toconsider at the time ofmaking adjustments toprovisional calculations
and deciding theappraisal value

Basis for valuation

3.3%

Assessed as the amount obtained by multiplying
assumed security deposit, etc. by investment yield, whichis assessed from both operational and procurement
aspects.
Assessed by referring to capital expenditures of similar
real estate.
Assessed by comprehensively taking into account thelocation, building conditions, contract terms, etc. of thetarget real estate.
Assessed by comprehensively taking into account theindividuality of the target real estate, referring to theinvestment yield in transactions for similar real estate.
Assessed by comprehensively taking into account future
uncertainly based on the capitalization rate.

2,940,000,000 yen
95.9%
4.1%

The target real estate is a retail facility located about 110m south of Omotesando Station on the Tokyo Metro Ginza
Line. The area has a concentration of roadside flagship stores such as luxury brand shops, and is considered to bea favorable location.
In this case, the appraisal value was determined to be 3,540,000,000 yen, based on the assessment of the revenue
price as 3,540,000,000 yen using both the direct capitalization method and the DCF method, and referring to theaccrued price.

The appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase at that appraisal value.
Note: The Asset Management Company decided not to disclose these items as no consent has been obtained from the tenants for thedisclosure of rents, etc., the assessment is based on actual results for reference and there is a possibility that disclosure of these items
will affect its competitiveness and damage the interests of unitholders.

9Reference Material 2<Table of Real Estate Portfolio After the acquisition of the Two Assets Planned to be Acquired>10

< Property photograph><Map of Surrounding Area>

11

< Property photograph><Map of Surrounding Area>

12